Glu Mobile Inc (GLUU) saw its loss widen to $17.21 million, or $0.13 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $2.96 million, or $0.02 a share. Revenue during the quarter dropped 24.12 percent to $46.31 million from $61.03 million in the previous year period. Gross margin for the quarter contracted 238 basis points over the previous year period to 55.94 percent. Operating margin for the quarter stood at negative 37.53 percent as compared to a negative 5.01 percent for the previous year period.
Operating loss for the quarter was $17.38 million, compared with an operating loss of $3.06 million in the previous year period.
"Our ability to exceed fourth quarter bookings expectations was primarily driven by the strong Design Home launch and the continued traction with Covet Fashion, both of which were related to the recent Crowdstar acquisition," stated Nick Earl, chief executive officer of Glu. "During the quarter, we also benefitted from the ongoing success of our evergreen titles Cooking Dash 2016, Gordon Ramsay DASH, Kim Kardashian: Hollywood, Tap Sports Baseball 2016 and Deer Hunter 2016."
Working capital drops significantly
Glu Mobile Inc has witnessed a decline in the working capital over the last year. It stood at $70.69 million as at Dec. 31, 2016, down 57.53 percent or $95.74 million from $166.43 million on Dec. 31, 2015. Current ratio was at 1.84 as on Dec. 31, 2016, down from 3.36 on Dec. 31, 2015.
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